Make something people want … There’s nothing more valuable than an unmet need that is just becoming fixable. If you find something broken that you can fix for a lot of people, you’ve found a gold mine.Paul Graham, Founder of Y Combinator, Venture Capitalist and essayist at paulgraham.com
Businesses are designed to make money. Every successful business is a value-creating ‘organism’. Without value creation, a business simply cannot exist. The best businesses are the ones that create the most value to other people. The market does not care about your needs, emotions or desires. It simply decides whether the product or service you are offering is worth the price you are asking.
The bottom line is known as ‘the fundamental and most important factor’ and is the net profit a business makes after deducting all expenses from the sales. Profit is a simple concept. It’s bringing in more money than you spend. In order for a business to continue to exist, the total revenue it collects must exceed the total expenses it accumulates.
No business can operate at a loss forever.
Regular monitoring and tracking of the profit and budgeting forward with accurate projections is an essential part of running and managing a business because ‘you cannot control what you don’t measure.’
Technology and cloud solutions such as Xero have made it easier than ever to keep a record of the business transactions. Business owners should be mindful of the ‘garbage in, garbage out’ concept in computing where incorrect or poor-quality input will produce faulty output.
As Xero certified advisers we can ensure your business data is accurate, up to date and we can provide training to ensure your staff are equipped to deal with the ever-increasing demands of the business.